Canopy’s Hot Button Progress Report 2026 records an increase in Green Shirt producers and commercially available Next Generation fibre lines, while highlighting supply-chain pressures affecting conventional forest-based fibres.
Canopy has released its Hot Button Progress Report 2026, providing an update on the sourcing landscape for man-made cellulosic fibres (MMCF) and the sector’s progress in reducing risks associated with forest-based fibre supply.
The 2026 edition is a simplified progress update following the tenth edition of the Hot Button Report in 2025. Canopy said the Hot Button criteria are being comprehensively updated for 2027 following consultation with producers, brands and other supply-chain stakeholders.
The Hot Button Report is used by fashion brands, home retailers and other companies to assess wood-based fibre sourcing, identify producers progressing on forest-related commitments and track the development of Next Generation fibre solutions.
Green Shirt producers increase to 79%
According to the 2026 assessment, 22 of 28 MMCF producers included in the Hot Button have achieved Green Shirt status. This represents 79% of the assessed producers, compared with 70% in 2025.
At the same time, the share of global MMCF production capacity represented by Green Shirt producers decreased slightly from 54% in 2025 to 53% in 2026. Canopy said two producers ceased MMCF production during the year, while one new producer joined the Hot Button list. The increase in the proportion of Green Shirt producers was attributed to newer producers signing policies and undergoing their first CanopyStyle Audits.
The Hot Button’s shirt-colour system reflects producers’ progress on forest sourcing commitments. Canopy states that red within a shirt indicates known supply-chain risk, while the different colour categories represent varying levels of engagement with its CanopyStyle commitments.
Next Generation fibre lines expand
The report also identifies continued development of Next Generation fibres as a key area of progress.
The number of commercially available Next Gen product lines increased from 16 in 2025 to 20 in 2026. Canopy describes these solutions as fibres using alternative feedstocks, including recycled textiles, agricultural residues and certified bamboo, rather than conventional forest pulp.
The report states that the sector remains dynamic and that the number of commercially available Next Gen products could increase further in the coming months.
Conventional fibre supply faces multiple pressures
Canopy’s 2026 assessment describes the MMCF sector as being in a period of change. The organisation identifies several factors affecting conventional fibre supply, including a constrained and contested land base, growing demand across sectors, declining forest stability, geopolitical changes and developing regulatory oversight.
Canopy said these pressures are increasing the importance of developing a stable and reliable supply of Next Generation fibres.
In its September 2026 media release, Canopy also highlighted forest fires, extreme weather, tariffs and geopolitical uncertainties as factors contributing to pressure on conventional forest-based fibre supply.
2027 criteria update planned
The 2026 report differs from previous editions because it is intended as a progress update rather than a full reassessment under newly revised criteria.
Canopy said the Hot Button criteria will be updated for the 2027 report after an extensive consultation process. The organisation said the revision follows a decade of developments in the MMCF sector and is intended to establish the framework for the next phase of assessment.
Until then, the 2026 shirt colours are largely carried over from 2025 and continue to provide guidance for brands when considering purchasing decisions.
Focus extends beyond forest sourcing
The report also notes that several environmental and social issues fall outside Canopy’s scope and expertise. These include land rights, water and energy use, health and safety, working conditions, labour practices, equity and discrimination.
Canopy encourages brands and producers to work with relevant third-party auditors, independent assessment methods and credible NGO partners when addressing these issues. It also recommends monitoring regulatory systems in relevant markets because new regulations may affect import and export compliance.
Next phase of MMCF sourcing
The 2026 Hot Button Progress Report indicates continued movement among MMCF producers toward forest-related sourcing commitments, alongside growth in commercially available Next Generation fibre options.
With the full criteria revision scheduled for 2027, the next edition is expected to provide an updated framework for assessing producer progress as the MMCF sector responds to changing supply-chain, regulatory and environmental conditions.